Trillion-dollar channel opportunity emerges as digital investments skyrocket
Worldwide spending on digital transformation (DX) technologies will reach US$1.2 trillion in 2017, with increased investment creating new opportunities for the channel.
Representing a healthy 17.8 per cent boost from 2016, IDC findings report that total market value will top US$2 trillion by 2020.
“Changing competitive landscapes and consumerism are disrupting businesses and creating an imperative to invest in digital transformation,” IDC Program Director, Eileen Smith, observed.
“It’s unleashing the power of information across the enterprise and thereby improving the customer experience, operational efficiencies, and optimising the workforce.”
Of the US$1.2 trillion spending in the year the ahead, discrete and process manufacturers will contribute almost 30 per cent, with the fastest growth expected to come from retail, healthcare providers, insurance, and banking.
From a partner perspective, the technology categories that will see the greatest amount of DX spending in 2017 are connectivity services, IT services, and application development and deployment (AD&D).
Combined, these categories will account for nearly half of all DX spending this year.
However, investments in these categories will vary considerably from industry to industry.
“The discrete and process manufacturing industries, for example, will invest roughly 20 per cent of their DX budgets in AD&D and another 12-13 per cent in IT services while the transportation industry will devote nearly half of its spending to connectivity services,” Smith explained.
Both locally and globally, the fastest growing technology categories associated with digital transformation over the five-year forecast are cloud infrastructure (29.4 per cent), business services (22 per cent) and applications (21.8 per cent).
Furthermore, IDC report that AD&D spending will grow fast enough to overtake IT services as the second largest DX technology category by 2020.
“More than half of all DX investments in 2017 will go toward technologies that support operating model innovations,” Smith added.
“These investments will focus on making business operations more responsive and effective by leveraging digitally-connected products/services, assets, people, and trading partners.
“Worldwide spending on digital transformation (DX) technologies will reach US$1.2 trillion in 2017”
serious money here..
“Both locally and globally, the fastest growing technology categories associated with digital transformation over the five-year forecast are cloud infrastructure (29.4 per cent), business services (22 per cent) and applications (21.8 per cent).”
the cloud has a green lining..green for money..